How Much Is Enough?

The numerical and emotional aspects of planning for retirement

This hands-on resource demystifies financial planning by giving the Enough number: an exact figure specific to personal goals, which can be a target number to aim for in retirement. It shows what changes will help to achieve the number, and offers an understanding of hidden motivations when it comes to spending money. It also provides an overview of the multitudes of investments available and provides conservative guidelines that will help make money, save taxes, and sleep at night.

• Offers a clear understanding of the different attitudes toward money and includes strategies to achieve goals
• Includes the tools needed to save for later and enjoy rewards today
• Contains a method for tracking money to help get your finances where you want them to be
• Covers the details of what it takes to work effectively with a financial advisor
• Written by Diane McCurdy, a noted financial planner, speaker, author, and founder of McCurdy Financial Planning

This hands-on guide walks you through a proven program that is designed to keep you on the right track to financial success.

Preface to the Third Edition ix

Acknowledgements xiii

Introduction xvii

PART ONE: WHAT IS ENOUGH?

Chapter 1: Your Money and Your Life 3

How Did You Score? 8

Two Attitudes, One Family 15

Money Myths 17

Chapter 2: Where It Goes 21

Tracking Your Cash Flow 22

Chapter 3: What You Want 37

What Do You Want, Anyway? 38

Wish List Favourites 45

Yearly Goals 49

Chapter 4: What’s Enough for You 55

The Magic Number 55

Crunching the Numbers 56

What Your Enough Number Means 72

PART TWO: GETTING ENOUGH

Chapter 5: Getting on Track 77

Needs vs. Wants 78

Budgeting—I’ll Try to Be Gentle 81

Chapter 6: Finding Financial Advice 95

Finding a Good Financial Advisor 96

Trust, Two Ways 98

Your Risk Profi le 104

Chapter 7: How to Make Your Money Grow 109

Loaners 110

Owners 115

Owner Investments: The Basics 119

Some Rules for Investing 134

Chapter 8: Registered Plans 137

Registered Retirement Savings Plans 138

Registered Education Savings Plans (RESPs) 148

Tax-Free Savings Accounts (TFSAs) 152

Saving Outside the Government Plans 157

Chapter 9: Ages and Stages 161

Age 20–35 161

Age 35–50 170

Age 50–65 Plus 172

Chapter 10: Family Finances 183

Teaching Kids the Value of Money 183

The Money Challenge 184

Chapter 11: I’ve Got Enough (Now What?) 193

A Changing Concept of Retirement 194

Retirement: The Financial Side 203

Chapter 12: Estate Planning 227

What Happens if I Don’t Have a Will? 228

Laying the Groundwork 231

What Happens to My Business? 240

How Do I Choose My Executor? 243

How to Save Tax and Probate on Your Estate 244

Chapter 13: Tips and Thoughts to Make It Work 245

Twenty Thoughts to Help You Stay on Track 246

Twenty Tips to Help You Save Money 247

Appendix: Financial Planning Professional Designations 249

Index 251

About the Author 261

Diane McCurdy, CFP, is the founder of McCurdy Financial Planning Inc., an established and respected firm that services clients from all walks of life. An active writer, educator, speaker and advisor, Diane is recognized internationally in her industry and in the media. She is also a real estate investor and a member of the Million Dollar Round Table.

Praise for How Much is Enough?

"The one question clients continually ask financial planner Diane McCurdy is 'How much is enough?' to retire on. The answers are in this timely guide to financial independence for young people, boomers on the cusp of retirement, and everyone between."
– Jonathan Chevreau, editor of MoneySense magazine and author of Findependence Day

"Most Canadians wish they had better control of their finances, and too many of them have no idea how to get it. How Much is Enough offers a clear, compelling and accessible answer. If you've ever wondered about how to safeguard your future, you need to read this book."
– Amanda Lang, Senior Business Correspondent, CBC News, author of The Power of Why

"Easy-to-read . . . information everybody should know about personal money management."
– Bruce Cohen, author of The Money Advisor and co-author of The Pension Puzzle

"A timely and useful book for boomers and others seriously interested in a comprehensive approach to financial planning for retirement."
– David K. Foot, author of Boom Bust & Echo

Find Your Sleep-at-Night-and-Retire-Well Number

Planning for retirement can be stressful, and whether your money will last as long as you do is one of the biggest burning questions. How Much is Enough? provides practical and personalized answers by examining both the financial and emotional aspects of money. You'll find out what money type you are and, as a result, you'll better understand your relationship to money and how money affects the relationships in your life. How Much is Enough? reveals four simple truths that will help you reach your goals:

• We need to acknowledge both the numerical and emotional sides of money issues
• We need to be able to reward ourselves while we prepare for the future
• We need to know where our money is going and understand our current situation
• Everyone needs a basic understanding of investing and investment products

This fully updated Canadian edition of How Much is Enough? will help you build a tailored financial plan that will help you make money, save taxes and sleep at night. You'll know exactly how much you'll need, what you'll need it for and how to achieve your retirement goals.